As indicated by A, the KLCI break below the T1 line, and therefore, has temporary lost its support. Nonetheless, the next support for the KLCI is at 1089 WinChart Automatic Fibonacci Retracement. If the KLCI should rebound from the 1089 WinChart Automatic Fibonacci Retracement, there is a chance for the KLCI to form a Double Bottom. Resistance for the KLCI remains at 1140 WinChart Automatic Fibonacci Retracement, as well as the Bollinger Middle Band dynamic resistance.

As shown on the chart, the Bollinger Bands Width remains unchanged (0%), this suggests that the current direction for the KLCI is unclear, and the new direction shall be revealed when the Bollinger Bands Width re-expands. Still, the KLCI has to break above the Bollinger Middle Band first, or else the immediate outlook for the KLCI is still negative biased.

As indicated by B, total market volume increased 2.2%, and as a result, the market volume is still below the 40-day VMA level, suggesting that the market participation is still relatively insufficient. Therefore, the KLCI is less likely to pick up any strenght.

As circled at C, the Stochastic touched 0% level, suggesting that the short term movement for the KLCI is over-sold. Generally, if the Stochastic should touched 0% level, the KLCI is likely to technical rebound. However, the Stochastic has to break above the 30% level in order to breakout from the short term bearish region.

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